The Arizona Revised Statutes have been updated to include the revised sections from the 55th Legislature, 2nd Regular Session. Please note that the next update of this compilation will not take place until after the conclusion of the 56th Legislature, 1st Regular Session, which convenes in January 2023.
This online version of the Arizona Revised Statutes is primarily maintained for legislative drafting purposes and reflects the version of law that is effective on January 1st of the year following the most recent legislative session. The official version of the Arizona Revised Statutes is published by Thomson Reuters.
A. With prior approval of the deputy director, an association may issue and sell its capital notes or debentures.
B. Capital notes and debentures legally issued by an association may be converted into shares of guaranty capital in accordance with such provision therefor as may be made in such capital notes and debentures with prior approval of the deputy director.
C. Capital notes and debentures shall be an unsecured indebtedness of the association and shall be subordinate to the claims of depositors, account holders and all other creditors of the association, regardless of whether the claims of depositors, account holders or other creditors arose before or after the issuance of such debentures or capital notes. In the event of liquidation, all depositors, account holders and other creditors of the association shall be entitled to be paid in full before any payment shall be made on account of principal or interest on such capital notes or debentures. No payment shall at any time be made on account of the principal thereof if the payment is prohibited by regulation of the insurance corporation.
D. Subject to a requirement in the articles of incorporation of the association, or an amendment thereto, and if authorized by the deputy director, convertible capital notes and debentures may be issued without offer thereof to existing stockholders.
E. The amounts of outstanding capital notes and debentures legally issued by any association shall be treated as if guaranty capital.